Indonesia is the largest archipelagic country in the world with more than seventeen thousand islands consisting of 270 million population, Indonesia is the fourth most populous country in the world which means it has a large domestic market that is open to investment. According Indonesian Investment Coordinating Board (BKPM), during January-December 2020 investment realization reached Rp. 826.3 trillion or grew 2.5% from the previous year. Most of the total investment is located in Java Island (49,5%) and the rest located in outside Java.
Java is the main and most developed island where most of Indonesia's population lives and most business and government activities are carried out. Central Java's economic growth is one of the best in Indonesia. Central Java is increasingly becoming an attractive investment location with the support of ease of mobility and logistics facilities that connect along the roads of the island of Java. With the Trans Java Toll Road, Central Java, which is in the middle of Java Island, is now an easy connecting point for logistics to West Java (as the economic center of Java Island) and also to East Java (as the gateway to the Eastern Indonesia market). This is the reason why many investors are currently interested in investing in Central Java.
Central Java has good economic growth from year to year. It is proven by the GDP of Central Java which exceeds the achievement of national GDP for the last 5 years from 2015-2019. The biggest sources of growth are the manufacturing, trade, and information & communication industries (DPMPTSP, 2020). Regional economic development cannot be separated from the development of investment value in Central Java, this can be seen from the achievement of targets for Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) in every year starting from 2015-2020 (DPMPTSP, 2021).